Cybersecurity

Definition:

The growing sophistication and variety of cyberattacks continue to wreak havoc on organizations’ brands and reputations, often resulting in disastrous financial impacts. This risk examines whether organizations are sufficiently prepared to manage cyber threats that could cause disruption and reputational harm.

Analysis:

Nearly every member of executive management sees Cybersecurity as being highly relevant to their organization. However, personal knowledge of this highly impactful risk remains particularly low amongst all players, particularly CAEs. This low level of knowledge likely stems from the ever-evolving nature of cyber threats. Overall, a low percentage of respondents across all groups rated the capability of their organizations to manage Cybersecurity as high. In particular, few board members perceive their organization as being highly capable of managing Cybersecurity.

KNOWLEDGE AND CAPABILITY

Percentage who gave a rating of 6 or 7 on a scale of 1 to 7

RISK STAGE

Remained in Develop

RISK RELEVANCE

Percentage who gave a rating of 6 or 7 on a scale of 1 to 7

– Cybersecurity

Quotes:

“Cybersecurity risk is an ever-evolving risk. The architecture and planning processes that have been used to deal with [cybersecurity] have become more complex as technology has become more prevalent.” –Board, Finance

“As we have witnessed with the pipeline hack this year, these cybersecurity attacks can have a huge trickle-down effect. All industries are susceptible to cybersecurity risk to some extent.” –Board, Manufacturing

77%

C-suite 87% 97%

Board CAE